Popular Creek Strives For Upscale Ambiance

March 24, 1985|By Catherine Collins.

James Young, president of Young Development Inc., has discovered an upscale niche in the northwest suburban real estate market.

According to Young`s calculations, that niche includes terrazzo floors, a state-of-the-art telecommunications system and an 18-hole championship golf course, all of which are rather pricey touches for the $180 million Poplar Creek project in Hoffman Estates.

Young and his joint-venture partner, Century Universal Enterprise (CUE), a subsidiary of Lyons Savings and Loan Association, are developing one of the largest mixed-use developments in the suburbs.

``I really give him credit for recognizing a hole in the market--a lifestyle-oriented townhome,`` said Tracy Cross, real estate consultant and president of Tracy Cross & Associates.

``However, it will not be long until the almost unique position Young is in will be filled by competitive programs, I know of five future

developments,`` Cross said.

About the partnership, Young said: ``Joint ventures are the only avenue for any major development to be accomplished today.

``The sophisticated dollars that are required to initiate, much less complete, any project today dictate that a major institution such as a large savings and loan or insurance company or pension fund will be required to do the funding.``

The low-key Young is somewhat of an upstart in this business. In 1961, he was an apprentice plumber. He built his first ``spec`` home in 1972. In 1978, he and a partner formed County Farm Construction, and Young got his first taste of site development and land planning with a 168-unit condominium project in Wheaton. In 1982, Young was on his own with his own firm, Young Development Inc. Poplar Creek is his biggest project to date, by far.

It was during the housing recession of the late 1970s that Young decided to build a company that could provide that expertise in what he described as

``one-stop shopping.`` He did that by acquiring in-house talent for architecture, land planning, engineering and marketing. The company would service the financial institutions that had acquired large properties, mainly from other developers` projects that had failed.

However, Lyons has brought more to the project than the traditional joint-venture partner.

``From the outset, our interest was as a developer, not just lender,``

said Richard McKinlay, vice president of Lyons.

``CUE has a direct equity interest in partnership, and it shares in both the profits and commitment of resources. It takes an active role in defining future development options and directing development in both broad and specific concepts. In addition, CUE gives the whole project the national reach required for such things as hotel development.``

The 250-acre site was once known as Moon Lake. Owned by Robin Construction Co., it was zoned for 4,000 multifamily units. The lender, Washington National Insurance Co., Evanston, took back the property in the late 1970s.

When Young and CUE acquired the property in 1982, they decided that the zoning was inappropriate for the time and location. It was rezoned for 450 townhouses, a 350-room hotel-convention center, an office campus with 380,000 square feet of office space, a secondary 110,000-square-foot office center, a 250-unit congregate living facility for the elderly and a 168,000-square-foot shopping center, all of which are to be scattered among the twists and turns of the golf course.

Barbara Miller, president of Lyons, said this ``planned community``

approach is an indication of the direction development will take in the future.

To date, this interpretation of market demands in the Hoffman Estates area appears right on target. The first phase of the townhome segment of the development is selling out at three times the anticipated rate. This proves, according to Young and McKinlay, that the demand for this top-dollar type of development in the northwest suburbs has been untapped.

The opening of 168 units in the first phase, which meanders around the fifth and sixth holes of the golf course, came last fall. At the current sales rate, Young expects the last unit to sell by the end of 1985, almost two years early.

In addition, Young is predicting that the anticipated five-year completion period for the project will be only three years.

The Poplar Creek project is Lyons` largest joint venture and one that will certainly have an impact on the continuing development of the northwest suburban corridor.

The development of the Poplar Creek property is ``an opportunity to define the character of the farthest point of contiguous development in the northwest corridor,`` McKinlay said. The impact will be felt throughout the suburbs, he added.

The focal point of Poplar Creek is the 117-acre golf course, which was designed originally by Killian & Nugent. The course was renovated and lengthened recently. Young described it as a ``very sporting`` course, with plenty of finger sand traps and water hazards on 14 of the 18 holes.